The "1 percent" and the "99 percent" have become household phrases in the last few years. But in the course of moving discussions of income distribution percentiles beyond economic text books and in to the popular discourse of sound bites and protest signs, the nuances can get lost. Which brings us to some interesting new research about the 1 percent, discussed in a recent book called “Chasing the American Dream.”

Back when the Occupy Wall Street movement was fond of chanting “We are the 99 percent” the book’s co-author, Mark Rank, got curious about some of the assumptions buried in that chant. Who exactly is the 99 percent? What’s their relationship to that remaining, increasingly notorious 1 percent?

The whole debate struck Rank as very us versus them. “There’s this image out there that those two groups do not cross over -- that they're static groups,” he says.

Rank is a professor of social welfare at Washington University in St. Louis, and so he had the tools to see if this static image of the 1 percent versus everyone else was true. He and his co-author, Thomas Hirschl of Cornell, combed through four decades of survey data that followed the lives of thousands of Americans to see how much money they made each year. And what they found surprised them.

The top-earners club isn’t quite the bastioned, unreachable world it's been painted out to be. “There actually is this really strong sense of fluidity in terms of folks entering the top income percentiles,” Rank says. According to Rank and Hirschl’s research, one in five Americans are in the 2 percent at some point in their lives. And one in eight spend at least a year in the one percent.

So who are these visitors to the 1 percent? Some might be your neighbors.

Barrett Yeretsian, 34, lives in the southern California suburb of Glendale, CA in a totally non-descript condo — the same one he grew up in. Yeretsian says growing up, he was solidly middle class. His mom, a widow, owned an Armenian book store in Los Angeles, and money was sometimes tight. Scholarships and help from family got him through college at UCLA.

When he graduated, he turned down acceptance at two top law schools in favor of trying to make it in the music industry, as a song-writer and producer. After years almost making it, a few years ago, a song he wrote in his bedroom, became this smash hit, Jar of Hearts, after it debuted on the reality show “So You Think You Can Dance.”

Literally over night, “everything changed,” Yeretsian says. Including his income. That year he catapulted in to the 1 percent. But, he says, tries not to live like he has. “Keep the overhead low. Enjoy life,” is his philosophy. (He was a philosophy major in college, and traces his non-lavish lifestyle back to reading Thoreau’s Walden.)

“Don't get me wrong, I go to Hawaii every year,” he says. And he’s bought several rental properties as investments. “Financially, I’m in a comfortable position. I think that's the big difference is you have that comfort.”

Jason Laan is another recent arrival to the 1 percent, who made the leap after his iPhone app made it big. For him, the surprising thing about being at the top is that it doesn't always feel like the top.

“The 1 percenters we think of spend $10,000 on a commode,” Laan says. “If you make $340,000” — the approximate household income needed to break into the 1 percent in the last few years — “you're not going to waste money on something like that.”

Laan says the year he made enough to qualify as a “1 percenter,” he asked his accountant about whether he should consider trying to take advantage of tax loop holes or off-shore accounts, to protect some of his money. His accountant laughed and told him he wasn't rich enough.

“You’re not connected enough to try to hide your assets in such a way,” Laan recalls his accountant saying. “You can’t afford the overhead.”

Another thing about the latest research on the 1 percent from Rank and Hirschl: While one in eight Americans might visit the 1 percent for a year, only one in a hundred stay there for a decade or more.

How much you have to earn in order to make it into the "1 percent" by year.

Year

Household
Income (USD)

1967

171,737

1968

191,151

1969

193,437

1970

191,119

1971

200,383

1972

217,578

1973

226,942

1974

222,524

1975

213,235

1976

234,114

1977

217,740

1978

229,473

1979

228,014

1980

222,287

1981

216,483

1982

211,998

1983

219,320

1984

235,775

1985

229,477

1986

240,388

1987

254,770

1988

277,464

1989

257,154

1990

257,815

1991

248,205

1992

262,715

1993

333,888

1994

308,292

1995

301,423

1996

320,269

1998

364,160

2000

440,253

2002

363,702

2004

362,315

2006

379,511

2008

376,608

2010

332,300

Source: Mark R. Rank, Thomas A. Hirschl, Is it just the One Percent, or is Affluence a Normal Life Course Event?, Cornell Univeristy

Krissy Clark is the senior correspondent for Marketplace’s Wealth & Poverty Desk, where she helps make sense of some of the most fundamental shifts happening in the U.S. economy, including the growth of the low-wage service sector and the shrinking of middle-wage, middle-class...